1/27 Chapter 2. Survival models. Manual for SOA Exam MLC. Chapter 2. Survival models. Actuarial problems. c 2009. Miguel A. Arcones. All rights reserved. Extract from: ”Arcones’ Manual for SOA Exam MLC. Fall 2009 Edition”, available at http://www.actexmadriver.com/ c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam MLC.
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Manual for SOA Exam MLC. - Binghamton Universitypeople.math.binghamton.edu/arcones/exam-mlc/chap-2-act.pdf · 2009. 11. 21. · (i) Only 10% survive to the end of the second year.
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Chapter 2. Survival models.
Manual for SOA Exam MLC.Chapter 2. Survival models.
(#31, Exam M, Fall 2005) The graph of a piecewise linear survivalfunction, s(x), consists of 3 line segments with endpoints (0, 1),(25, 0.50), (75, 0.40), (100, 0).
(#32, Exam M, Fall 2005) For a group of lives aged 30, containingan equal number of smokers and non–smokers, you are given:(i) For non-smokers, µn(x) = 0.08, x ≥ 30.(ii) For smokers, µs(x) = 0.16, x ≥ 30.Calculate q80 for a life randomly selected from those surviving toage 80.(A) 0.078 (B) 0.086 (C) 0.095 (D) 0.104 (E) 0.112
(#35, Exam M, Fall 2005) An actuary for a medical devicemanufacturer initially models the failure time for a particulardevice with an exponential distribution with mean 4 years. Thisdistribution is replaced with a spliced model whose densityfunction:(i) is uniform over [0, 3](ii) is proportional to the initial modeled density function after 3years(iii) is continuousCalculate the probability of failure in the first 3 years under therevised distribution.(A) 0.43 (B) 0.45 (C) 0.47 (D) 0.49 (E) 0.51
(#13, Exam M, Fall 2005) The actuarial department for theSharpPoint Corporation models the lifetime of pencil sharpenersfrom purchase using a generalized De Moivre model withs(x) = (1− x/ω)α, for α > 0 and 0 ≤ x ≤ ω.A senior actuary examining mortality tables for pencil sharpenershas determined that the original value of α must change. You aregiven:(i) The new complete expectation of life at purchase is half what itwas previously.(ii) The new force of mortality for pencil sharpeners is 2.25 timesthe previous force of mortality for all durations.(iii) ω remains the same.Calculate the original value of α.(A) 1 (B) 2 (C) 3 (D) 4 (E) 5
(#14, Exam M, Fall 2006) You are given:(i) T is the future lifetime random variable.(ii) µ(t) = µ, t ≥ 0(iii) Var[T ] = 100.Calculate E [T ∧ 10].(A) 2.6 (B) 5.4 (C) 6.3 (D) 9.5 (E) 10.0
(#16, Exam M, Fall 2006) You are given the following informationon participants entering a special 2-year program for treatment ofa disease:(i) Only 10% survive to the end of the second year.(ii) The force of mortality is constant within each year.(iii) The force of mortality for year 2 is three times the force ofmortality for year 1.Calculate the probability that a participant who survives to the endof month 3 dies by the end of month 21.(A) 0.61 (B) 0.66 (C) 0.71 (D) 0.75 (E) 0.82
(#23, Exam M, Fall 2006) You are given 3 mortality assumptions:(i) Illustrative Life Table (ILT),(ii) Constant force model (CF), where s(x) = e−µx x > 0,(iii) DeMoivre model (DM), where s(x) = 1− x
ω , 0 ≤ x ≤ ω,For the constant force and DeMoivre models, 2p70 is the same asfor the Illustrative Life Table.Rank e70:2| for these 3 models.(A) ILT < CF < DM (B) ILT < DM < CF (C)CF < DM < ILT (D) DM < CF < ILT (E)DM < ILT < CF
(#13, MLC–09–08) A population has 30% who are smokers with aconstant force of mortality 0.2 and 70% who are non-smokers witha constant force of mortality 0.1. Calculate the 75th percentile ofthe distribution of the future lifetime of an individual selected atrandom from this population.(A) 10.7 (B) 11.0 (C) 11.2 (D) 11.6 (E) 11.8
(#22, MLC–09–08) For a population which contains equalnumbers of males and females at birth:(i) For males, µ(m)(x) = 0.10, x ≥ 0(ii) For females, µ(f )(x) = 0.08, x ≥ 0Calculate q60 for this population.(A) 0.076 (B) 0.081 (C) 0.086 (D) 0.091 (E) 0.096
(#28, MLC–09–08) For T , the future lifetime random variable for(0):(i) ω > 70(ii) 40p0 = 0.6(iii) E (T ) = 62(iv) E [min(T , t)] = t − 0.005t2 , 0 < t < 60Calculate the complete expectation of life at 40.(A) 30 (B) 35 (C) 40 (D) 45 (E) 50
(iii) k is a constant such that S = 0.75RDetermine an expression for k.(A) ln((1− qx)/(1− 075qx)) (B) ln((1− 0.75qx)/(1− px))(C) ln((1− 0.75px)/(1− px)) (D) ln((1− px)/(1− 0.75qx))(E) ln((1− 0.75qx)/(1− qx))
(#98, MLC–09–08) For a given life age 30, it is estimated that animpact of a medical breakthrough will be an increase of 4 years in◦e30, the complete expectation of life.Prior to the medical breakthrough, s(x) followed de Moivre’s lawwith ω = 100 as the limiting age.Assuming de Moivre’s law still applies after the medicalbreakthrough, calculate the new limiting age.(A) 104 (B) 105 (C) 106 (D) 107 (E) 108
(#116, MLC–09–08) For a population of individuals, you are given:(i) Each individual has a constant force of mortality.(ii) The forces of mortality are uniformly distributed over theinterval (0,2).Calculate the probability that an individual drawn at random fromthis population dies within one year.(A) 0.37 (B) 0.43 (C) 0.50 (D) 0.57 (E) 0.63
(#131, MLC–09–08) Mortality for Audra, age 25, follows DeMoivre’s law with ω = 100. If she takes up hot air ballooning forthe coming year, her assumed mortality will be adjusted so that forthe coming year only, she will have a constant force of mortality of0.1.Calculate the decrease in the 11-year temporary complete lifeexpectancy for Audra if she takes up hot air ballooning.(A) 0.10 (B) 0.35 (C) 0.60 (D) 0.80 (E) 1.00
(#189, MLC–09–08) You are given:(i) T is the future lifetime random variable.(ii) µ(t) = µ, t ≥ 0(iii) Var[T ] = 100.(iv) X = T ∧ 10Calculate E [X ].(A) 2.6 (B) 5.4 (C) 6.3 (D) 9.5 (E) 10.0